Crude prices rose sharply on Tuesday amid mounting concerns over a fresh escalation in tensions between Washington and Tehran, as negotiations between the US and Iran appeared to stall with little sign of progress.
US President Donald Trump is said to be increasingly frustrated with the pace and substance of negotiations with Tehran and, in recent days, has reportedly given more serious consideration to resuming large-scale military operations against the country.
By 8:20 a.m., July Brent crude futures had risen by $0.70, or 0.67%, to $104.91 a barrel on the ICE Futures Europe exchange in London. On Monday, Brent gained $2.92, or 2.88%, to settle at $104.21 a barrel.
Meanwhile, June futures for West Texas Intermediate rose by $0.88, or 0.9%, to $98.95 a barrel in electronic trading on the New York Mercantile Exchange. The contract had advanced by $2.65, or 2.78%, during the previous trading session to close at $98.07 a barrel.
“Optimism over a swift agreement is fading,” said Suvro Sarkar, head of the energy sector analysis team at DBS Bank. “If there is still no realistic prospect of a deal by the end of May, then the risk of further increases in oil prices will remain very much in play.”
